Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Potential Highs and Lows For Gold In 2020 - 5th Jun 20
Tying Gold Miners and USD Signals for What Comes Next - 5th Jun 20
Rigged Markets - Central Bank Hypnosis - 5th Jun 20
Gold’s role in the Greater Depression of 2020 - 5th Jun 20
UK Coronavirus Catastrophe Trend Analysis Video - 5th Jun 20
Why Land Rover Discovery Sport SAT NAV is Crap, Use Google Maps Instead - 5th Jun 20
Stock Market Election Year Cycles – What to Expect? - 4th Jun 20
Why Solar Stocks Are Rallying Against All Odds - 4th Jun 20
East Asia Will Be a Post-Pandemic Success - 4th Jun 20
Comparing Bitcoin to Other Market Sectors – Risk vs. Value - 4th Jun 20
Covid, Debt and Precious Metals - 3rd Jun 20
Gold-Silver Ratio And Correlation - 3rd Jun 20
The Corona Riots Begin, US Covid-19 Catastrophe Trend Analysis - 3rd Jun 20 -
Stock Market Short-term Top? - 3rd Jun 20
Deflation: Why the "Japanification" of the U.S. Looms Large - 3rd Jun 20
US Stock Market Sets Up Technical Patterns – Pay Attention - 3rd Jun 20
UK Corona Catastrophe Trend Analysis - 2nd Jun 20
US Real Estate Stats Show Big Wave Of Refinancing Is Coming - 2nd Jun 20
Let’s Make Sure This Crisis Doesn’t Go to Waste - 2nd Jun 20
Silver and Gold: Balancing More Than 100 Years Of Debt Abuse - 2nd Jun 20
The importance of effective website design in a business marketing strategy - 2nd Jun 20
AI Mega-trend Tech Stocks Buying Levels Q2 2020 - 1st Jun 20
M2 Velocity Collapses – Could A Bottom In Capital Velocity Be Setting Up? - 1st Jun 20
The Inflation–Deflation Conundrum - 1st Jun 20
AMD 3900XT, 3800XT, 3600XT Refresh Means Zen 3 4000 AMD CPU's Delayed for 5nm Until 2021? - 1st Jun 20
Why Multi-Asset Brokers Like TRADE.com are the Future of Trading - 1st Jun 20
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Silver Running Up to Resistance at $16

Commodities / Gold & Silver 2009 Feb 16, 2009 - 01:51 AM GMT

By: Clive_Maund

Commodities Best Financial Markets Analysis ArticleSilver has advanced in a satisfactory manner to the first target given in the last update at the resistance in the $14 area and is now at a critical juncture, for there are several factors pointing to its breaking down into a reaction shortly. However, it could instead break above the resistance in the $14 area which would be expected to lead to a steep and rapid run at the strong resistance level in the $16 where exhaustion would set in.


The reason for this "it's probably going to break down, but it could instead rise steeply" interpretation, is readily apparent on the 1-year silver chart. For on this chart we can see 3 major factors that point to imminent reversal - it has arrived at an important resistance level around but mainly below the $14 level, and also at its falling 200-day moving average, which is a restraining influence, and its slow stochastic, shown at the bottom of the chart, is hovering at an extremely overbought level.

On the other side of the coin it is still above the support of a parabolic bowl, which is rising more and more steeply and could "slingshot" silver at the strong resistance level in the $16 area, where it would arrive in an extremely overbought state and would be expected to rapidly burn out and react. We are going are going to have an answer to this one very soon now, for silver is being forced into a corner between the rising parabola and the upper return line of the uptrend channel - it must break one way or the other very soon. The major stock indices, as we have already observed, are looking set to break heavily lower, and if forced to take sides, we would have to go for silver breaking lower soon.

The long-term outlook for both gold and silver remains excellent, with global currency debasement being highly fashionable, and near zero interest rates thrown in for good measure - no wonder investors are buying physical gold and silver hand-over-fist. This being so, if silver breaks down from the parabola shown soon as expected, it is likely to react back across the uptrend channel towards its lower support line, where it is expected to stabilize and turn up again. It will therefore be a buy again on an approach to this support line. If instead it breaks above $14 and races towards $16, traders can reduce positions there in expectation of a reaction, and get back in again once the reaction has run its course.

By Clive Maund
CliveMaund.com

For billing & subscription questions: subscriptions@clivemaund.com

© 2009 Clive Maund - The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maunds opinions are his own, and are not a recommendation or an offer to buy or sell securities. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.

Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.

Clive Maund Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

JOHN VERDERBER
17 Feb 09, 15:12
SILVER

SILVER IS A MANIPULATED MARKET, ALONG WITH GOLD, OBVIOUSLY,SEE INVESTMENTRARITIES.COM COMMENTARY BY TED BUTLER..


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules